By Areena FxEUR/USD drifts back to low 1.09s. Economists at Scotiabank analyze the pair’s outlook.
The short-term trend remains lower
The EUR is carving out a broad consolidation range on the chart following the late December/early January slide against the USD.
Friday’s volatility clouds the short-run outlook to some extent but, outside of a move back above 1.10, the short-term trend in spot remains lower – albeit amid slack trend momentum.
Minor support at 1.0930 is under pressure. Weakness through here should see spot retest the upper 1.08s.